SOLUTION: A person has 25000 total to invest in two municipal bonds. The interest rates are 5.2% and 6%. The client wants to collect 1350 annually on the bond paying 6% interest. How much
Algebra.Com
Question 999895: A person has 25000 total to invest in two municipal bonds. The interest rates are 5.2% and 6%. The client wants to collect 1350 annually on the bond paying 6% interest. How much does he need to invest
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
I=prt
1350=p*0.06
principal=$22,500
That is what needs to be invested at 6%
RELATED QUESTIONS
An investment firm recommends that a client invest in bonds rated AAA, A, and B.... (answered by ikleyn)
An investment company recommends that a client invest in AAA, AA, and A rated bonds.... (answered by greenestamps)
Could someone please help me in solving this problem, the answer I came up with was... (answered by stanbon,Earlsdon)
An investment broker has given $250,000 to invest in a 12-month commitment. The money can (answered by lynnlo)
An investor wants to invest $25,000 into two municipal bonds that pay 5.2% and 6% simple... (answered by josmiceli)
The Creative Arts Fund must raise $2,500 next year by investing $30,000 in federal notes... (answered by addingup,ikleyn)
Please help me solve this word problem:
An investment firm recommends that a client... (answered by richwmiller)
An investment firm recommends that a client invest in bonds rated AAA, A, and B. (answered by jorel1380)
Among a group of 2,500 people, 35 percent invest in Municipal Bonds, 18 percent invest... (answered by Theo,ikleyn)